Ford Motor Company Case Analysis

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Ford Motor Company Background/Introduction: Henry Ford started the company on June 16, 1903, with 11 business associates and $28,000 in capital. Ford first came out with the Model A in order to provide affordable car to large population. With such effort, Ford’s production of Model T increased from 20,277 on 1910 to 585,388 in 1916 cutting the price down by more than half, $420. In 1919, the Fords purchased all outstanding shares for $105,820,894, making Ford Motor Company a family-owned business. Henry’s son, Edsel Ford, took over the business side of the company and had a significant impact on innovations such as better design, hydraulic brakes, production of a six-cylinder engine, and the V-8. After recapturing the number two position in 1950, Ford has been putting great efforts to hold its reign of successful business. Ford Motor Company made tremendous budget cuts every time when faced with recession and net loss in order to remain profitable. Fortunately enough, Ford was able to capture and regain its reputation while other competitors such as GM and Chrysler were bailed out and Toyota suffered hugely from recalled vehicles. Ford Motor Company is still one of three leading automotive manufacturing companies in the United States. Analysis: During the 70s and early 80s, top three major auto makers, General Motors, Ford, and Chrysler were troubled by competition from foreign countries such as Toyota, Honda, and Nissan which manufactured much better fuel efficiency cars to meet the new fuel efficiency standards. Even after acquiring the Swedish Volvo model in order to compete in the foreign market and expand to other regions, Ford Motor Company was unable to make it profitable and sold it to Geely. Finding its own way to reach to top, Bill Ford hired the outsider, Alan Mulally of Boeing Corporation. During Mulally’s presidency, Ford reported a profit of

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